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California Corporate Tax Hike Proposed as Homeless Funding Solution
A bill proposed by California legislators on Wednesday would increase taxes on corporations in an effort to help solve the state’s homeless problem. Assembly Bill (AB) 71, the Bring California Home Act, is expected to raise more than $2.4 billion annually.
Assemblywoman Luz Rivas (D-Arleta) and Assemblymember David Chiu (D-San Francisco) were joined by Assemblymember Richard Bloom (D-Santa Monica), Los Angeles Mayor Eric Garcetti and Oakland Mayor Libby Schaaf to unveil the proposed bill.
Assemblywoman Rivas says, “One in four Americans experiencing homelessness reside in California. If we don’t create dedicated ongoing funding for homelessness that allows for state and local partnership and coordination, homelessness will only get worse.”
Advocates say the bill will create, for the first time, an ongoing state funding source for long-term solutions to homelessness. Opponents say Assembly Bill 71 does little to counter a growing perception that California is inhospitable to business.
The bill would close corporate tax loopholes and restore historic corporate tax rates to their 1980’s level. Housing California’s Christopher Martin points out Assembly Bill 71 would raise the corporate income tax from 8.84% to 9.6% on companies that make more than $5 million annually in profits in California.
The ongoing funding source is expected to give local governments desperately needed resources to implement programs and action plans that combat homelessness, notes Assemblywoman Rivas. The bill also ensures transparency and strong accountability that holds local governments accountable to ensure every dollar is used effectively.
For comments, questions or concerns, please contact Dennis Kaiser
